Dreman's Rule

Dreman's Rule is an investment principle suggesting that investors tend to overreact to news and market fluctuations, often leading to poor decisions based on fear or greed. To counteract this, the rule advises taking a disciplined approach: avoid impulsive reactions, focus on undervalued stocks with strong fundamentals, and maintain a long-term perspective. By doing so, investors can potentially capitalize on opportunities that others overlook due to emotional biases, ultimately leading to better investment results over time.